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EMPLOYMENT SECURITY (UNEMPLOYMENT COMPENSATION)-Continued

Item

Present law

H.R. 12580

III. Administrative financing

-Continued

B. Unemployment Trust Fund Continued

Receipts from the net Federal unemploy

ment tax (0.3 percent) are used to pay the cost of administering Federal and State operations of the employment security program.

At the end of each fiscal year, after Federal and State administrative expenses have been paid, any excess net Federal unemployment tax receipts are earmarked and placed in the Federal unemployment account to maintain a balance of $200,000,000 in that account.

This account is used to make advances to the

States with depleted reserve accounts. Any excess receipts not required to maintain

the $200,000,000 balance in the Federal unemployment account is allocated to the trust accounts of the various States in the proportion that their covered payrolls bear to the aggregate of all the States. These excess receipts may, under certain conditions, be used by a State to supplement Federal grants in financing administrative operations.

A new account, called the employment security

administration account, will be established in the Unemployment Trust Fund. All receipts from the net Federal unemployment tax (0.4 percent) will be credited initially to this new account. Federal and State administrative expenses will be paid out of this account with a maximum of $350,000,000 per year allowable for State

administrative expenses. At the end of a fiscal year, excess receipts after

administrative expenses will be credited to the Federal unemployment account to build up and maintain a maximum balance of $550,000,000 or 0.4 percent of covered payrolls, whichever is greater, for use in

making advances to States. After the Federal unemployment account

reaches its statutory limit, any remaining excess of net Federal unemployment taxes over administrative expenses will be retained in the employment security administration account until that account shows a net balance at the close of the fiscal year of $250,000,000. This net balance is to be used to provide funds out of which administrative expenses may be paid during each fiscal year prior to the receipt of the bulk of Federal unemployment taxes in January and

February. Pending the building up of the $250,000,000

balance in the employment security administration account, advances to the account are authorized from a revolving fund which would be financed by a continuing appropriation from the general fund of the Treasury.

These advances will be repaid with interest. After the Federal unemployment account is

built up to its statutory limit, and the yearend net balance of the employment security administration account reaches $250,000,000, and after any advances from the general fund of the Treasury have been repaid, any excess in the employment security administration account will be distributed to the accounts of the various States in the same manner as is provided under present law, except that if any State has outstanding advances from the Federal unemployment account its share of the surplus funds will

be used to reduce these outstanding advances. Effective date: Fiscal year 1961. Bill: Sec. 521. House report, pp. 51-53, 108, 116.

EMPLOYMENT SECURITY (UNEMPLOYMENT COMPENSATION)—Continued

Item

Present law

H.R. 12580

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A State's eligibility for advances (applied for

after enactment) may be determined at any time. Advances will be made only if in the account of the State requesting an advance the sum of reserves on hand plus expected tax receipts will be inadequate to meet the expected level of benefit payments during

the current or following month. Bill: Sec. 522(a). House report, pp. 53–54, 116-117. Advances will be made in amounts which the

Secretary of Labor estimates will be required to pay compensation during the current or following month, including amounts to cover unexpected contingencies.

The aggregate amount of loans approved by the Secretary of Labor may not exceed the amount available for advances in the Fed

eral unemployment account.
Bill: Sec. 522(a).
House report, pp. 53–54, 116-117.
Same as present law.

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EMPLOYMENT SECURITY (UNEMPLOYMENT COMPENSATION)—Continued

Item

Present law

H.R. 12580

III. Administrative Financ

ing-Continued

C. Advances to the States—Continued 3. Repayment of

advances-Con.

If an advance to any State has been outstand

ing at the beginning of four consecutive years, the employers' credit in that State against the Federal tax is reduced from 2.7% to 2.55%. This increase in the net Federal tax is used to pay off the advance. During successive years in which the advance is outstanding the employers' credit is reduced by an additional 0.15% a year. If a State repays outstanding advances by Dec. 1 of any year the reduced credit provisions do not come into operation for that year.

If an advance to any State made after enact

ment is outstanding at the beginning of two consecutive years, the employers' credit in that State against the Federal tax is reduced from 2.7% to 2.4%. During successive years in which the advance is outstanding the employers' credit is reduced by an additional 0.3% a year. If a State repays outstanding advances by Nov. 10 of any year the reduced credit provisions do not come into operation for that year.

In addition to the reduction of 0.3% a year in

the employers' tax credit against the Federal tax two other possible credit reductions are provided. The first provides that beginning in the third year in which an advance is outstanding the maximum employers' credit is reduced by the amount, if any, by which the average employer contribution rate in the preceding year was less than 2.7%. The second credit reduction provides that in the fifth year in which an advance is outstanding if the State's benefit-cost rate over the preceding five years is higher than 2.7% then the employers' credit shall be reduced by the amount, if any, by which the State's average contribution rate in the preceding year is less

than such benefit-cost rate. Bill: Sec. 522(a), 523(b). House report, pp. 54–55, 118-124.

Maximum OAA money payment of $100

available for nursing home care. For
nonnatives, State program of general
assistance is used to meet medical
needs, including hospitalization and
nursing-convalescent home care not
met in the money payment to the re-
cipient. For natives, Bureau of In-
dian Affairs is & resource for medical
care including hospitalization.

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TABLES ON PUBLIC ASSISTANCE MEDICAL PROGRAMS Table 1.-Summary information on medical care available to old-age assistance recipients through federally aided public assistance vendor payments, and

other resources (based on information supplied by Bureau of Public Assistance, June 1960)

Vendor payments

State

Vendor

pay-
ment
method Practitioner

used

Hospitalization
(including controls
or limitations on

hospital days)

Other resources for medical care avail

able to old-age assistance (OAA)
recipients

Drugs

Nursing home care

Other

Arkansas

Yes.

Yes 1

Yes.

As recommended by No?

physician for all
acute illnesses and
injuries. General
rule: 30 days &
year; extension
possible.

$90 maximum,

plus $5 in money payment for personal needs.

No

(vendor payments for OAA recipients in publio medical insti

Nursing home care provided through

money payment of $115 or $95 maximum (depending on recipients income). Hospitalization available in

all locations from county hospitals.

Yes

Yes.

Money payment

$106, plus $20 to
$95 vendor pay-
ment based on
patient's needs.

Connecticut

Yes..

Yes

Yes.

No

Yes.

All recommended by

physician for definitive medical treatment. No limitation on number of days.

Nursing home care provided through

money payment to recipient. Pay budgetary deficit up to approved rate. Maximum rate: $212.33.

Delaware

No.

No.

No.

No.

No.

No.

Nursing home care provided through

money payment. Maximum of $75 may be supplemented up to approved rate. Hospitalization for indigent persons reported as provided by county governments.

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tutions after 1st 60 days).

Colorado

Yes.

Yes.

All recommended by

physician, except
for purpose of diag-
nosis only. Gen-
eral rule: 30 days;
extension possible.

District of Colum

bia.

1 Applicable only if surgery is authorized by remedial eye services section
for cooperating ophthalmologist.

Some drugs provided by vendor payment when dispensed by hospital
for continuation of treatment after discharge of a patient who has received
inpatient care for the same condition.

• Vendor payments may be made for drugs, appliances, dental services,
and optical supplies recommended by physician, hospital, or clinic when such
are not available without cost to the agency through other services.

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